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Gold price near steady ahead of U.S. data dump

Gold prices are near steady and silver a bit lower in early U.S. trading Wednesday, just ahead of a big batch of U.S. economic data releases that could impact today’s price action in the metals. February gold was last down $0.40 at $2,029.80. March silver was last down $0.138 at $22.955.

U.S. economic data due out Wednesday includes the weekly MBA mortgage applications survey, retail sales, import and export prices, the weekly Johnson Redbook retail sales report, industrial production and capacity utilization, the NAHB housing market index, manufacturing and trade inventories and the Federal Reserve’s beige book.

Asian and European stock markets were mostly lower overnight. U.S. stock index futures are set to open lower when the New York day session begins.

In overnight news, China reported its economic growth was the slowest in decades in 2023 (save for the Covid lockdown years), amid weakening consumer confidence and the slumping property sector. China’s gross domestic product expanded by 5.2% in the fourth quarter and for the year 2023. China’s Premier Li Qiang mentioned the weak GPD data in a speech in Davos, Switzerland on Tuesday. While below market expectations, the 4Q GDP number did meet the Chinese government’s expectations for economic growth in 2023. Today’s numbers helped to pressure commodity markets, including crude oil, as China, the world’s second-largest economy, is a voracious consumer of raw commodities.

The key outside markets today see the U.S. dollar index up a bit after hitting a four-week high Tuesday. Nymex crude oil prices are lower and trading around $70.75 a barrel. Meantime, the yield on the benchmark U.S. Treasury 10-year note is presently fetching around 4.04%.

Technically, the gold futures bulls have the overall near-term technical advantage. Prices are in a three-month-old uptrend on the daily bar chart. Bulls’ next upside price objective is to produce a close in March futures above solid resistance at $2,100.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $2,000.00. First resistance is seen at today’s high of $2,036.10 and then at $2,050.00. First support is seen at today’s low of $2,020.50 and then at the January low of $2,017.30. Wyckoff’s Market Rating: 6.5.

The silver bears have the overall near-term technical advantage. Prices are in a choppy, five-week-old downtrend on the daily bar chart. Silver bulls’ next upside price objective is closing March futures prices above solid technical resistance at $25.00. The next downside price objective for the bears is closing prices below solid support at the November low of $22.26. First resistance is seen at today’s high of $23.11 and then at this week’s high of $23.50. Next support is seen at the overnight low of $22.79 and then at last week’s low of $22.63. Wyckoff’s Market Rating: 4.0.

Source: Kitco